You work for a company that assembles plastic toys. Generally speaking, employees working at similar assembly plants receive $15.00 per hour. Internal corporate data indicates that the average worker should be able to assemble 20 toys per hour. Your organization has made a strategic decision to pay assembly line workers on the basis of their output. What is the piece rate you are contemplating paying your assembly line workers?
A) $300.00 per day
B) $1.33
C) $0.75
D) unable to determine given the data provided

Question

Quizplus · Accepted Answer

If the average worker assembles 20 toys per hour, and they are paid on the basis of their output, then the piece rate should be the amount paid per toy. To determine this rate, we can divide the hourly wage of $15 by the average number of toys assembled per hour (20):

Hourly wage / Average output = Piece rate
$15 / 20 = $0.75

Therefore, the piece rate should be $0.75 per toy. Option C is the correct answer.

You Work for a Company That Assembles Plastic Toys